5 Key Benefits of Liquidity Analysis

5 Key Benefits of Liquidity Analysis

The current marketplace is causing everyone to ask a lot of questions, but there are few definitive answers unless your entity is armed with data. A comprehensive liquidity analysis by cashvest® provides essential short- & long-term benefits to your entity. Here are 5 key benefits we are talking about today!

Liquidity Is Like an Iceberg

Liquidity Is Like an Iceberg

Liquidity is like an iceberg… it’s the part that you can’t easily see that may be the most important to you.

County governments are complex, diverse organizations that encompass dozens of agencies, multiple segregated funds, and anywhere from 40 to more than 400 separate, individual bank accounts.

“Liquidity”’ is the cash that is sitting in those numerous bank accounts, in many cases going largely unnoticed on a day-to-day basis.

A ship’s captain needs information about the colossal part of the iceberg that lurks quietly beneath the surface of the water. Likewise, county leaders need information and data about exactly how much overall cash they have to work with, and precisely when that cash will be needed to meet spending obligations.

cashvest® is the proprietary financial tool, developed by three+one®, that can help your county identify that liquidity, precisely measuring its size and depth, and then help you put that vital information to work.

What can cashvest® do for you?

Increased Interest Earnings – The valuable data that your county will receive from the cashvest® dashboard will provide your CFO with ongoing critical information about the available cash balances in those dozens (in many cases hundreds) of different bank accounts. That cash can then be put to work earning interest—perhaps in certificates of deposit, converted into a money-market accounts, or even invested in U.S. Treasury bills. The results, and the increased revenues to your county, will surprise you.

Decreased Banking Fees – Banks are providing important financial services to your municipality. In many cases, banks will tell you that these services are being provided at no cost to the county. But of course, there is some “cost” in that your bank probably requires that your county maintain a “compensating balance” in order to qualify for those “free” services.

For example, let’s say your county is required to maintain a $10 million minimum balance in order to avoid bank service fees. And let’s just say that $10 million could be earning 60 basis points in interest, even in today’s low-rate environment. That means that your county could have earned $60,000 in interest on that money over 12 months. So, while you didn’t write a check to your bank, you still compensated it to the tune of $60,000 because they had the use of your money. Let cashvest® help you identify multiple smaller accounts which can result in lower compensating balances being required. By putting more of that $10 million to work, your county might be able to pocket a large chunk of that $60,000.

Other benefits of liquidity information include avoidance of unnecessary short-term borrowing, increased bond ratings, and lower interest rates when your county does need to borrow money. Why not give three+one® a call? You may discover that your iceberg is a lot bigger than you thought!

Communication is Critical

Communication is Critical

Communication is always important, but the need for critical messaging and the flow of accurate and timely information has been a necessity given the current state of the COVID-19 crisis. At three+one® we have always seen ourselves as public servants, aiding our public sector and higher-ed partners in finding new sources of revenue and turning your existing cash into your most powerful asset.
In that service to the public, and in communicating to our clients, three+one® has the partnership of Steven James Media Group, a firm of likeminded principles to public service. In recent weeks, Steven James launched a media campaign to highlight the commitment of their partners to those they serve. We want to share a portion of that campaign with you here, and to showcase how three+one® is helping communities all across the country navigate the financial marketplace using the power of data and information to get on the Pathway to Recovery®.

 

Your Voice Matters! Tell Congress to Support Local Governments

Your Voice Matters! Tell Congress to Support Local Governments

Powerful Advocates.
Our partners at the National Association of Counties (NACo) have been true champions for the 3.6 million county, parish and borough employees on the front lines of the nation’s response to COVID-19.
At three+one® we see first-hand the financial stresses being placed on county governments during this uncertain time. Our work to provide liquidity management to these public entities at the county level could hardly be done without standing in partnership with advocates and resources like those found at NACo. Their We Are Counties campaign is putting a human face to the frontline public employees making a difference in their commuities and providing essential services despite great personal sacrifice.
Our team at three+one® gives nothing short of an impassioned endorsement for this impactful initiative and urges every public employee, county-level or otherwise, to review the resources available, and to be an advocate for those we all serve together.
NACo’s WeAreCounties.org website provides immensely useful guidance on voicing support through letter-writing campaigns, emailing Congressional representatives, and taking your voice to social media to harness the power of public influence. This tool also provides critical information & resources, not just from NACo, but also from their network of partners, of which three+one® is proud to belong.
As NACo continues to advocate for the much-needed federal aid to counties, you can also join the growing swell of voices demanding action on behalf of your county-level colleagues.
Your Voice Matters! Urge Congress to Take Action Public Entities Need Direct Aid
As the next COVID-19 relief package is considered by our country’s leaders, we are urging our partners to get involved and advocate for direct aid to local governments. Our towns, cities & counties desperately need the resources of the federal government to continue providing the essential services to the public amid an unprecedented economic situation. Your voice has the power to educate & advocate our leaders.
Take Action Today Contact Your Member of Congress